A May 7 incident report time-stamped 5:25 PM PDT states that AWS spotted "instance impairments" in the use1-az4 availability zone of the US-EAST-1 Region. A subsequent update states "EC2 instances and EBS volumes hosted on impacted hardware are affected by the loss of power during the thermal event."
Specifically, analysts pulled some numbers out of their... hat, and decided that Amazon would end up spending $150 billion on CapEx for 2026. Amazon then proclaimed that it was going to be a lot closer to $200 billion ("no worries, you only missed by the GDP of Croatia"), and the industry spent the next two business weeks just beating the absolute stuffing out of their stock for it. How badly? Shares fell 11% after hours, then kept falling for nine straight sessions - the longest losing streak since 2006 - erasing more than $450 billion in market value. That's more than the entire market cap of most companies that analysts are supposedly experts at evaluating.
Nested virtualization involves running a hypervisor inside another hypervisor. It is not an entirely bonkers idea because it offers the chance to create a test or simulation environment for the collection of linked VMs that makes up many enterprise IT setups. The technique can also be useful in production for containerised workloads, which often see tools like Kubernetes and Docker run in a VM, and every container running in its own VM.
